Speaking at a dinner hosted by the Cyprus Property Developers Association in Limassol, the president attributed the anticipated price drop to new housing developments that are set to balance supply and demand in the market. Addressing attendees, including Interior Minister Constantinos Ioannou, Christodoulides described real estate and construction as a ‘key pillar’ of the Cypriot economy, contributing 15 per cent to GDP and employing over 40,000 people.

He thanked the association for its cooperation, describing its input as “constructive” in strengthening the business development framework and making the economy “more resilient and more competitive.” Referring to ongoing reforms, he said the government’s housing policy aims to address the housing issue with targeted measures that increase supply, particularly for young people, through the production of affordable units. “The results so far demonstrate both the correctness of the policies we are following, but also how the cooperation between the public and private sectors brings results for the benefit of the entire Cypriot people,” he said.

Christodoulides cited the national housing strategy ‘Stegazo to Mellon mou’, which includes urban planning scheme and the Build to Rent scheme. Under these programmes, developers are granted a 25 to 45 per cent bonus in building coefficient, provided a portion or all of the additional units are offered at affordable rates. According to the Interior Ministry, developers and citizens alike have shown strong interest in these initiatives. So far, more than 1,900 new housing units are expected to be built under these schemes, with a significant portion earmarked for the affordable housing market.

The President added that over €8 million from the sale of additional building rights will be channelled into Cyprus Land Development Organisation (Koag) special affordable housing scheme to support further housing initiatives. “Within this framework, based on our plans, in the next few years, with the strengthening of the real estate market with new housing stock, there will be a balancing of supply and demand, which will ultimately lead to a reduction in rental and purchase prices,” he said. He noted that from the third quarter of 2024, a slowing trend in housing price increases has already been observed. This continued into the fourth quarter, as reflected in the House Price Index released last week by the Central Bank of Cyprus. “Taking into account the estimates for the performance of the plans, as well as the interest shown, the authorities predict that the rate of deceleration will be maintained in the short term,” he said.

Christodoulides also referenced recent EU statistics showing Cyprus ranked 24th among 27 member states in terms of rent and housing price increases. Turning to permitting procedures, he emphasised the government’s reform efforts, which include reducing the issuance time for urban planning and building permits to 40 working days for low-risk and 80 days for medium-risk developments, a move intended to streamline construction and accelerate housing delivery. The President also confirmed that a bill regulating jointly owned buildings is currently under legal review and will soon be submitted to parliament, aiming to improve the management of such properties and resolve persistent disputes.

Elsewhere in his address, he reiterated Cyprus’ ambition to complete all technical requirements for Schengen accession by the end of 2025. He also noted the launch of the Business Support Center, part of broader reforms aimed at boosting public sector efficiency and enhancing the investment climate. “Our primary goal is to increase the productivity of the Public Service and its efficiency for the benefit of the business community and, by extension, the Cypriot economy,” Chistodoulides concluded.

Source: Cyprus Mail